Tilaknagar Industries Ltd. announced on Wednesday that it would acquire the iconic Imperial Blue whisky brand from Pernod Ricard India Pvt. for an enterprise value of approximately Rs 4,150 crore.
The transaction will be executed on a slump sale basis, and includes associated manufacturing assets and contracts, according to an exchange filing.
The sale includes two owned manufacturing facilities and various co-bottling agreements. As part of the deal structure, a deferred payment of approximately Rs 282 crore will be made four years after closing, reducing the upfront financial burden on Tilaknagar Industries.
The acquisition of Imperial Blue — India's third-largest whisky brand with annual sales of over 22 million 9-litre cases — catapults Tilaknagar Industries into the highly competitive whisky segment, which accounts for around two-thirds of India's spirits market.
Pernod Ricard's decision to divest Imperial Blue is seen as part of its broader strategy to focus on its premium portfolio, which includes Royal Stag, Blenders Pride, Chivas Regal, and Jameson. By offloading a value segment brand, the French liquor giant aims to enhance its margins and streamline its product mix in India.
For Tilaknagar, this acquisition aligns with its Vision 2030 roadmap to become a pan-India spirits company with a well-diversified product portfolio. The Indian-made foreign liquor company is reportedly in talks with private credit funds to raise up to $500 million to fund the transaction, with Avendus Capital acting as financial advisor.
The deal is subject to regulatory approvals, including from the Competition Commission of India, and is expected to close in the coming months. Once completed, it will rank among the largest acquisitions in India's alcohol industry, following Diageo's Rs 10,000 crore purchase of United Spirits a decade ago.
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